What GAO Found

The Department of Labor (Labor) designed and awarded the grants following its standard competitive award process by developing and publishing an announcement, screening applicants, and convening expert panels to score applications. It also collaborated with the Department of Education to develop the announcement and identify panelists. Though they varied in terms of target populations, as permitted by the grant, the applications GAO reviewed addressed trade impact, as required. However, the law’s requirement that every state receive a minimum amount of funding created challenges for Labor and certain grantees when applicants in 17 states scored below the cutoff score for grant awards. In these instances, Labor’s process stipulated that states designate an eligible institution. States, however, were given a 3-day deadline—over a weekend—to designate a grantee. As a result, these states had little time to identify an institution. The states that GAO contacted said that they found this process challenging or confusing and that they received no guidance from Labor. Moreover, state-designated grantees experienced delays in implementing their grants and required assistance from Labor to modify their original proposals and comply with grant requirements. Labor has identified lessons learned from the first round of grants and applied them to the second round, but the process for selecting state-designated grantees has remained similar to that used in the first round.

Labor monitors grantees in various ways and grantees are in the early stages of implementation. Most grantees, as anticipated, are building capacity for their programs and have not yet enrolled participants. Labor reviews grantees' quarterly progress reports, communicates with grantees, and plans to conduct on-site monitoring as resources permit. The most recently available progress reports indicate that grantees have taken steps to set up their programs by, for example, hiring program administrators and developing curricula. In addition, as of March 31, 2012, grantees had spent 5 percent of awarded funds, but have until September 2014 to spend all the funds. State-designated grantees received funds several quarters after the grants were awarded, while awaiting Labor's approval of their plans, but Labor’s monitoring did not indicate that these grants were more likely to have problems with grant integrity or performance than the others. Labor rated the overall risk of most grants as low, but identified performance accountability as a moderate or high risk area for more than a third of grants after the first quarter of fiscal year 2012. In response to this implementation challenge, Labor issued additional guidance for grantees.

Labor plans to evaluate the program at the national and grantee levels. Labor plans to begin the first phase of the evaluation in fall 2012. Labor stated that the evaluation will be based partly on a survey of grant recipients and site visits to a sample of grant projects. Given the relatively early stage of grant implementation, the national evaluation will focus on program implementation and subsequently examine outcome data to assess program effectiveness. Also, round-two grantees will be required to obtain third-party evaluations of their projects. Labor anticipates challenges in obtaining consistent and comparable grantee outcome data. And given that the grant performance period for the first round of grants is 3 years, it will likely be several more years before Labor can determine overall program effectiveness.

Status Legend:

Review Pending-GAO has not yet assessed implementation status.

Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.

Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.

Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.

• Review Pending
• Open
• Closed - implemented
• Closed - not implemented

Recommendation for Executive Action

Recommendation: To provide greater assurance that Trade Adjustment Assistance Community College and Career Training (TAACCCT) grants are awarded to the most promising projects in every state, the Secretary of Labor should take steps to more effectively manage the process whereby states designate a grantee. This could include building in additional lead time for states to designate a higher education institution or providing states with guidance to help inform their designation of a grantee.

Agency Affected: Department of Labor

Status: Review Pending

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.